“We believe PwC’s activities represent nothing short of the promotion of tax avoidance on an industrial scale,” said Public Accounts Committee (PAC) chair Margaret Hodge MP. “Contrary to its denials, the tax arrangements PwC promotes, based on artificially diverting profits to Luxembourg through intra-company loans, bear all the characteristics of a mass-marketed tax avoidance scheme.”

PwC denied it was doing anything wrong.

“We stand by the evidence we gave the PAC and disagree with its conclusions about the work we do. But we recognise we need to do more to explain the positive role we play in the tax system and in helping businesses to operate successfully.”